香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部 或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 CHEN HSONG HOLDINGS LIMITED 震 雄 集 團 有 限 公 司 (於百慕達註冊成立之有限公司) (股份代號：00057) 截至二零二三年三月三十一日止財政年度之全年業績公告 財 務 摘 要 二零二三年 二零二二年 變動 業績摘要（港幣千元） 收益 2,312,584 2,728,763 -15% 除稅前溢利 158,941 238,568 -33% 本公司權益持有人應佔溢利 130,289 213,309 -39% 資產總值 4,149,309 4,429,327 -6% 股東權益 3,049,140 3,209,049 -5% 已發行股本 63,053 63,053 0% 流動資產淨值 1,990,404 2,042,490 -3% 每股數據 每股基本盈利﹙港仙﹚ 20.7 33.8 -39% ...

Financial Performance - Revenue for the six months ended September 30, 2022, was HKD 1,321,680, a decrease of 15% compared to HKD 1,557,052 in the same period last year[4] - Profit before tax decreased by 44% to HKD 92,177 from HKD 165,668 year-on-year[4] - Profit attributable to equity holders was HKD 75,104, down 39% from HKD 123,162 in the previous year[4] - Basic earnings per share decreased to HKD 11.9 cents, a decline of 39% from HKD 19.5 cents in the same period last year[4] - Total revenue for the six months ended September 30, 2022, was HKD 1,321,680,000, a decrease of 15.1% from HKD 1,557,052,000 in the same period last year[67] - Adjusted profit before tax for the six months ended September 30, 2022, was HKD 108,997,000, down 39.8% from HKD 180,974,000 in the previous year[67] - The company’s total comprehensive income for the period was not specified, indicating no significant earnings or losses reported[39] Assets and Liabilities - Total assets decreased by 11% to HKD 3,962,299 from HKD 4,459,165 year-on-year[4] - Shareholders' equity decreased by 5% to HKD 2,933,529 compared to HKD 3,082,758 in the previous year[4] - Net current assets decreased by 9% to HKD 1,869,375 from HKD 2,054,677 year-on-year[4] - Non-current assets decreased from HKD 1,280,106,000 to HKD 1,165,408,000, a decline of approximately 9%[23] - Current assets decreased from HKD 3,149,221,000 to HKD 2,796,891,000, a decline of about 11%[23] - Total liabilities decreased from HKD 1,106,731,000 to HKD 927,516,000, a reduction of approximately 16%[23] - Total equity decreased from HKD 3,228,462,000 to HKD 2,950,506,000, a decline of around 9%[24] - Cash and bank balances decreased from HKD 671,911,000 to HKD 574,928,000, a decrease of about 14%[23] Cash Flow and Dividends - The net cash inflow from operating activities for the six months ended September 30, 2022, was HKD 77,470,000, compared to a net outflow of HKD 214,265,000 for the same period in 2021[56] - The company reported a net cash outflow from financing activities of HKD 94,498,000 for the six months ended September 30, 2022, compared to HKD 118,263,000 in the previous year, indicating a reduction of approximately 20.1%[56] - The cash and cash equivalents at the end of the period were HKD 574,928,000, down from HKD 817,649,000 at the end of the previous year, reflecting a decrease of about 29.7%[56] - The company paid dividends amounting to HKD 73,142,000 during the reporting period, slightly higher than HKD 72,511,000 paid in the same period last year[56] - The company declared an interim dividend of HKD 0.045 per share, totaling HKD 28,374,000, compared to HKD 0.052 per share and HKD 32,788,000 in the previous year[79] Revenue Breakdown - Revenue from the China and Hong Kong segment was HKD 952,551,000, a decline of 16.9% compared to HKD 1,145,843,000 in the prior year[67] - Revenue from Taiwan decreased by 56.1% to HKD 38,142,000 from HKD 86,677,000 year-on-year[67] - Revenue from other overseas countries increased slightly by 2.3% to HKD 330,987,000 from HKD 324,532,000[67] - The revenue from the mainland China market decreased by 17% to HKD 953 million, compared to HKD 1,146 million in the previous year[120] - The international market revenue slightly increased by 2% to HKD 331 million, compared to HKD 324 million in the previous year, despite significant regional disparities[122] Operational Challenges - The company experienced disruptions in logistics and supply chains due to COVID-19 lockdowns in Shanghai, impacting component imports and product exports[113] - The manufacturing PMI in mainland China remained below the 50 mark for four months in the first half of the fiscal year, indicating contraction in manufacturing activity[119] - The GDP growth forecast for China was significantly lowered to 4.5%, marking one of the lowest growth rates in nearly 30 years[119] Shareholder Information - The company has issued 630,531,600 shares as of September 30, 2022, with a par value of HKD 0.10 per share[95] - The major shareholder, Chen Hsong Investments, holds 399,641,620 shares, representing approximately 63.38% of the company's issued ordinary shares[160] - David Michael Webb holds 15,147,200 shares (2.40%) and an additional 22,746,800 shares (3.61%) through Preferable Situation Assets Limited[160] Governance and Compliance - The company has complied with all corporate governance codes except for the requirement that each director should retire at least once every three years[165] - The audit committee reviewed the unaudited interim results for the six months ending September 30, 2022, discussing internal controls and financial reporting matters[171] - The company has adopted a code of conduct for directors' securities trading, confirming compliance with the standards set forth in the code[166]

Financial Performance - Revenue for the year ended March 31, 2022, was HK$2,728,763,000, representing a 16% increase from HK$2,360,553,000 in 2021[18]. - Profit before tax decreased by 12% to HK$238,568,000 from HK$270,802,000 in the previous year[18]. - Profit attributable to equity holders of the Company increased by 5% to HK$213,309,000 compared to HK$203,021,000 in 2021[18]. - Total assets rose by 1% to HK$4,429,327,000 from HK$4,378,438,000[18]. - Shareholders' funds increased by 7% to HK$3,209,049,000 from HK$2,996,532,000[18]. - Basic earnings per share improved by 5% to 33.8 HK cents from 32.2 HK cents[18]. - Cash dividends per share also increased by 5% to 16.8 HK cents from 16.0 HK cents[18]. - Net assets per share rose by 6% to HK$5.1 from HK$4.8[18]. - Return on average shareholders' funds decreased to 6.9% from 7.2%[18]. - Return on average total assets declined to 4.8% from 5.2%[18]. Market Performance - The Group's primary market, China, experienced mild turnover growth due to COVID-19 outbreaks and geopolitical tensions affecting exports[27]. - The international turnover recorded material growth despite geopolitical instabilities in the second half of the financial year[27]. - The Group's turnover in Mainland China reached HK$1,987 million, reflecting a 5% increase from HK$1,891 million in the previous year, despite a significant 38% growth in the first half of the financial year[51][52]. - The Taiwan market saw a remarkable 35% growth in turnover, reaching HK$132 million, up from HK$98 million in the previous year, driven by recovering consumption in developed countries[56][59]. - International turnover grew by 64% to HK$610 million, compared to HK$372 million in the previous year, benefiting from the recovery in the European and U.S. markets[61]. Product Development and Innovation - The Group successfully launched the MK6e "Evolution" series, maintaining a similar sales ratio in the small-to-medium tonnage segment[27]. - The company plans to invest more resources into R&D for new products, including the upcoming MK6.6/A "Artisan" series, enhancing the hot-selling MK6 production line[27]. - The Group plans to focus on developing the next generation of advanced two-platen injection moulding machines to enhance production efficiency for customers in the electric vehicle and environmental sectors[31][40]. - The Group's new product, the MK6.6/A Artisan Edition, aims to enhance customer competitiveness and adapt to various application scenarios[58]. - The Group is set to launch the new MK6.6/A "Artisan" models, enhancing the popular MK6 product line to provide better, more affordable options for a wider range of applications[62]. Challenges and Risks - The first half of the financial year experienced robust growth due to strong internal demand and exports in China, while the second half faced significant challenges from global economic shocks and geopolitical tensions[36][40]. - The Group's production capacity was severely impacted by COVID-19 lockdowns in major Chinese cities, particularly in Shenzhen, which disrupted logistics and deliveries[39][40]. - The overall market environment remains uncertain due to ongoing geopolitical tensions and economic instability, which the Group aims to address through strategic realignment and new product development[30][31]. - The Group faced challenges from rising raw material prices and supply chain disruptions due to COVID-19 lockdowns, impacting production and logistics[51][52]. - Economic indicators in China showed a GDP growth rate of only 4.8%, leading to a downward revision of the annual GDP growth target to 5.5%[48]. Corporate Governance - The company has complied with all code provisions of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules, except for specific deviations regarding director retirement and separation of roles[121]. - The board consists of two executive directors and four independent non-executive directors, ensuring a diverse governance structure[125]. - The Company has adopted a Code of Conduct for Securities Transactions by Directors, ensuring compliance with the required standards throughout the year ended 31 March 2022[153]. - The Company has a strong commitment to maintaining high standards of corporate governance to safeguard shareholder interests and enhance performance[121]. - The Company has established appropriate policies to assess and manage risks in pursuit of its strategic objectives[135]. Management and Leadership - Ms. Lai Yuen Chiang has been with the Group since 1988 and became the Chairman in April 2018, overseeing management and business development[107]. - Mr. Stephen Hau Leung Chung joined the Group in 2001 and serves as the Group Chief Officer for Strategy, Sales, and Marketing, bringing over 14 years of experience in various sectors[108]. - The company has a strong board with members holding significant positions in various industries, enhancing its strategic direction and governance[110]. - The Group's leadership is focused on strategic growth and market expansion, leveraging the expertise of its directors[110]. - The board includes independent non-executive directors with extensive backgrounds in finance and management, ensuring diverse perspectives in decision-making[112]. Environmental and Social Responsibility - The Group's environmental policy focuses on minimizing operational impacts on the environment and promoting clean production[94]. - The Group has implemented training programs to raise environmental protection awareness among employees and engage suppliers and customers in environmental initiatives[98]. - The Group's procurement policy is based on maintaining good relationships and communications with high-quality suppliers as strategic partners[89]. - The Group remains committed to compliance with relevant laws and regulations across its operations in Mainland China, Hong Kong, and Taiwan[100]. Financial Management - The Group recorded a net cash position of HK$678 million as of March 31, 2022, down from HK$1,129 million, representing a decrease of HK$451 million[72]. - The Group's income tax expense decreased to HK$25 million from HK$66 million in the previous year, a reduction of HK$41 million[72]. - Capital commitments as of March 31, 2022, amounted to HK$13 million, primarily for upgrading industrial facilities and purchasing production equipment in Mainland China[80]. - The Group's borrowings in Japanese yen were HK$22 million as of March 31, 2022, down from HK$24 million in the previous year[82]. - The Group has pledged bank deposits of HK$27 million as of March 31, 2022, compared to HK$52 million in the previous year[77].

Financial Performance - Revenue for the six months ended September 30, 2021, was HKD 1,557,052,000, representing a 51% increase from HKD 1,030,042,000 in the same period last year[5]. - Profit before tax increased by 64% to HKD 165,668,000, compared to HKD 101,269,000 in the previous year[5]. - Profit attributable to equity holders of the company rose by 68% to HKD 123,162,000, up from HKD 73,187,000 year-on-year[5]. - Basic earnings per share increased to HKD 0.195, a 68% rise from HKD 0.116 in the prior year[5]. - The average return on equity improved to 4.1%, up from 2.7% in the previous year, marking a 52% increase[5]. - The average return on total assets rose to 2.8%, a 40% increase from 2.0% in the previous year[5]. - The total tax expense for the six months ended September 30, 2021, was HKD 40,741,000, compared to HKD 27,948,000 in the previous year[71]. - The group did not recognize any Hong Kong profits tax due to no taxable profits arising from Hong Kong during the period[70]. Assets and Liabilities - Total assets grew by 15% to HKD 4,459,165,000, compared to HKD 3,866,656,000 in the previous year[5]. - Shareholders' equity increased by 10% to HKD 3,082,758,000 from HKD 2,808,113,000 year-on-year[5]. - Net current assets increased by 9% to HKD 2,054,677,000 from HKD 1,886,356,000 year-on-year[5]. - Non-current assets increased to HKD 1,159,783,000 as of September 30, 2021, up from HKD 1,098,416,000 as of March 31, 2021, representing a growth of 5.6%[30]. - Current liabilities decreased to HKD 1,244,705,000 from HKD 1,255,722,000, showing a reduction of 0.9%[30]. - Total equity increased to HKD 3,101,281,000 as of September 30, 2021, up from HKD 3,013,046,000, representing a growth of 2.9%[31]. Cash Flow and Investments - For the six months ended September 30, 2021, the net cash outflow from operating activities was HKD (214,265,000), compared to a cash inflow of HKD 141,766,000 in the same period last year[57]. - The company reported a net cash outflow from investing activities of HKD (13,657,000) for the period, compared to HKD (4,312,000) in the previous year[57]. - Financing activities resulted in a net cash outflow of HKD (118,263,000), significantly higher than HKD (35,472,000) in the prior year[57]. - The total cash and cash equivalents at the end of the period were HKD 817,649,000, down from HKD 1,136,492,000 at the end of the previous year[57]. - The company has allocated HKD 26,130,000 for deposits on property, plant, and equipment, up from HKD 22,879,000, indicating ongoing investment in infrastructure[30]. - The company plans to continue its investment in property, plant, and equipment, with expenditures of HKD (38,406,000) during the period[57]. Market and Segment Performance - The revenue from the China and Hong Kong segment was HKD 1,145,843,000, up 38% from HKD 829,192,000 in the same period last year[67]. - The Taiwan segment reported revenue of HKD 86,677,000, a significant increase from HKD 39,233,000 in the previous year[67]. - The profit before tax from the overseas segment was HKD 22,867,000, compared to HKD 9,737,000 in the previous year, marking a substantial growth[67]. - International market revenue doubled to HKD 324 million, up from HKD 162 million, driven by strong demand in Europe and the Americas[111]. Challenges and Economic Conditions - The company faced challenges due to a rapid increase in the Producer Price Index (PPI) in mainland China, which rose over 10% within six months, impacting manufacturing costs and overall profit levels[104]. - The company experienced a decline in industrial production in mainland China due to high raw material prices and power restrictions, with GDP growth dropping from 7.9% in Q2 to 4.9% in Q3 of the fiscal year[104]. - The market environment for the second half of the fiscal year is expected to be extremely unpredictable, influenced by raw material price fluctuations, US-China trade disputes, and the development of COVID-19 variants[124]. Corporate Governance and Management - The company has complied with all provisions of the corporate governance code during the six-month period ending September 30, 2021, with exceptions noted[149]. - The chairman and group president roles are held by the same individual, which is deemed suitable for the company due to her skills and experience[151]. - The audit committee and management reviewed the unaudited interim results for the six-month period ending September 30, 2021, discussing internal controls and financial reporting matters[156]. Employee and Shareholder Information - The total number of full-time employees increased to approximately 2,400 as of September 30, 2021, up from 2,200 in 2020, reflecting the company's commitment to competitive compensation and employee development[123]. - The company has issued 630,531,600 ordinary shares, with a par value of HKD 0.10 per share, unchanged from the previous period[86]. - The major shareholder, Zhenxiong Investment, holds 399,641,620 shares, accounting for 63.38% of the company[143].

震雄集團有限公司 CHEN HSONG HOLDINGS LIMITED (於百慕逵註冊成立之有限公司) (Incorporated in Bermuda with limited liability) (股份代號 Stock Code: 00057) 2020/21 ANNUAL REPORT 年報 UM CHEN HSONG JM120-MK6a JETMASTER ■ JI SAEN HISONS प्रति ulu 財務摘要 Financial Highlights 截至二零二一年三月三十一日止年度 Year ended 31 March 2021 | --- | --- | --- | --- | --- | |------------------------|--------------------------------------------|-----------|-----------|---------------| | | | 2021 | 2020 | 變動 \nChange | | | | | | | | 業績摘要 （港幣千元） | RESULTS HIGHLIGHTS (HK$' ...

Financial Performance - For the six months ended September 30, 2020, the company reported a revenue of HKD 1,030,042,000, representing a 32% increase from HKD 781,360,000 in the same period last year[4] - The profit attributable to equity holders for the same period was HKD 73,187,000, a significant increase of 115% compared to HKD 34,101,000 in the previous year[4] - Basic earnings per share rose to HKD 11.6 cents, up 115% from HKD 5.4 cents year-on-year[3] - The gross profit margin for the period was approximately 27.1%, compared to 23.3% in the previous year[30] - The company reported a pre-tax profit of HKD 101,269,000, which is a 102% increase from HKD 50,158,000 year-on-year[4] - The total comprehensive income for the period was HKD 178,716,000, compared to a loss of HKD 80,720,000 in the previous year[32] - The group's profit before tax for the six months ended September 30, 2020, was HKD 73,187,000, compared to HKD 34,101,000 in 2019, representing a significant increase of 114%[66] - The adjusted profit before tax for the company was HKD 101,269,000 for the six months ended September 30, 2020, compared to HKD 50,158,000 in 2019, indicating a growth of 101.5%[59] Assets and Liabilities - The company's total assets increased to HKD 3,866,656,000, reflecting a 13% growth from HKD 3,414,096,000[4] - Current assets increased to HKD 2,832,279,000 from HKD 2,431,450,000, representing a significant growth of about 16.5%[35] - The total liabilities increased to HKD 1,044,309,000 from HKD 764,263,000, indicating a rise of approximately 37%[36] - The company's net assets increased to HKD 2,822,347,000 from HKD 2,678,310,000, showing a growth of around 5.4%[36] - As of September 30, 2020, non-current assets totaled HKD 1,034,377,000, an increase from HKD 1,011,123,000 as of March 31, 2020, reflecting a growth of approximately 2.6%[35] Cash Flow and Dividends - The company declared a cash dividend of HKD 4.5 cents per share, which is a 29% increase from HKD 3.5 cents in the prior year[3] - The company reported a net cash inflow from operating activities of HKD 141,766,000 for the six months ended September 30, 2020, compared to HKD 139,318,000 in the same period of 2019, reflecting a slight increase of 1.05%[49] - The company experienced a net increase in cash and cash equivalents of HKD 101,982,000, compared to HKD 113,967,000 in the previous year[49] - The cash and cash equivalents at the end of the period were HKD 1,136,492,000, compared to HKD 754,729,000 in 2019, showing an increase of 50.6%[49] Market Performance - Revenue from the China and Hong Kong segment reached HKD 829,192,000, a significant increase from HKD 507,823,000 in 2019, representing a growth of 63.2%[59] - Revenue from Taiwan decreased by 43% to HKD 39 million, down from HKD 68 million in 2019[91][96] - Revenue from other overseas markets fell by 21% to HKD 162 million, down from HKD 205 million in the previous year[91][98] - The group achieved over 60% growth in the Chinese market, with revenue reaching HKD 829 million, up from HKD 508 million in the previous year[90][95] Operational Efficiency - The group implemented measures to enhance production efficiency, resulting in a total production value increase of over 40% compared to the same period last year[100] - The new MK6e series injection molding machines accounted for nearly half of the group's sales in the small and medium-sized injection molding machine segment[94] - The SPARK series of all-electric injection molding machines gained significant market acceptance, contributing to the group's growth during the pandemic[99] Shareholder Information - The company reported a total of 399,641,620 shares held by major shareholder Zhenxiong Investment, representing approximately 63.38% of the issued ordinary shares[126] - The company has no outstanding stock options as of September 30, 2020, and no options were granted, exercised, or lapsed during the six-month period[123] - The company’s major shareholders include Schroders Plc, holding 50,012,000 shares, which is approximately 7.93% of the total[126] Corporate Governance - The company has complied with all provisions of the corporate governance code as of September 30, 2020, except for deviations related to the rotation of directors every three years[130] - The chairman and group president roles are held by the same individual, which the company deems suitable for providing strong leadership and effective decision-making[132] - The audit committee and management reviewed the unaudited interim results for the six months ending September 30, 2020, including discussions on internal controls and financial reporting[138] Future Outlook - The outlook for the second half of the year remains optimistic due to effective pandemic control and the promotion of the domestic circulation economy[110] - The group aims to enhance market share and competitiveness despite ongoing global economic uncertainties[110] - The group plans to continue developing new materials and technologies, including high-end injection molding processes for the 5G and electronics industries[99]

Financial Performance - Revenue for the year ended March 31, 2020, was HK$1,513,363,000, a decrease of 7% from HK$1,635,938,000 in 2019[3] - Profit attributable to equity holders of the Company increased by 4% to HK$93,651,000 from HK$90,279,000 in the previous year[3] - Basic earnings per share rose by 4% to 14.9 HK cents from 14.3 HK cents[4] - Total assets remained stable at HK$3,442,573,000, a slight decrease of 0% from HK$3,451,745,000[3] - Net current assets increased by 9% to HK$1,765,510,000 from HK$1,612,556,000[3] - For the financial year ended March 31, 2020, the Group reported total turnover of HK$1,513 million, a decline of 7% compared to HK$1,636 million in 2019[20] - Profit attributable to equity holders increased by 4% to HK$94 million, up from HK$90 million in the previous year[20] - The Group's basic earnings per share increased to HK14.9 cents from HK14.3 cents in the previous year[36] - The Group's profit attributable to equity holders was HK$35 million, down from HK$58 million in 2019, after accounting for special items such as foreign exchange losses and one-time gains from property sales[78] Dividends - Cash dividends per share increased by 29% to 9.0 HK cents from 7.0 HK cents in 2019[4] - The company proposed a special final dividend of 1.7 HK cents, contributing to a total annual dividend of 9.0 HK cents[6] - The Board recommended a special final dividend of HK1.7 cents, bringing the total full-year dividend payout to HK9.0 cents, compared to HK7.0 cents in 2019[21] - The Board recommended a final dividend of HK3.8 cents per share and a special final dividend of HK1.7 cents per share for this financial year[38] Impact of COVID-19 - The management anticipated a recovery in the second half of the fiscal year following a trade agreement between the US and China, but was impacted by the COVID-19 pandemic[18] - The company faced significant challenges due to global economic conditions, particularly from the US-China trade tensions and the COVID-19 outbreak[18] - The economic environment in 2020 was severely affected by the COVID-19 pandemic, with significant disruptions to consumption and industrial production in China[37] - The COVID-19 pandemic caused a significant impact, wiping out two to three months of global consumption and leading to serious GDP drops in many countries[43] - Production facilities were shut down for nearly a month due to the pandemic, but the Group was among the first to resume operations in mid-February 2020[74] - The Group's efforts in customer engagement during the pandemic helped mitigate the impact on turnover, demonstrating strong support from its customer base[59] Market Performance - The Group's sales performance in the first half of the financial year declined by 12% year-on-year, but the new MK6e product line saw strong sales growth in Q3, compensating for most of the first half's decline[44] - The Group's turnover in Mainland China and Hong Kong for the year was HK$1,039 million, a decrease of 2% from HK$1,062 million in 2019[49] - The Group's turnover from Taiwan dropped by 22% to HK$98 million, down from HK$125 million in 2019[49] - The Group's turnover from other overseas countries decreased by 16% to HK$376 million, compared to HK$449 million in 2019[49] - The Group's China business experienced a 13% decline in the first half of the year, but managed to achieve only a 2% overall decline for the year due to strong support from customers[56] - International turnover dropped by 16% to HK$376 million from HK$449 million in 2019 due to shipping disruptions caused by the COVID-19 pandemic[66] - Taiwan market turnover decreased by 22% to HK$98 million from HK$125 million in 2019, reflecting the impact of global lockdowns on export activities[67] Strategic Initiatives - The Group plans to focus on developing specialized solutions for specific application segments, including the "TP ii" second-generation large machines and the MK6e series for electric appliances[29] - The Group aims to enhance competitiveness by investing in new technologies, improving quality, and expanding market share despite ongoing uncertainties from the trade war and pandemic[33] - The Group plans to continue investing in specialized, value-creating solutions to meet diverse industry needs, aligning with the Chinese government's technological development roadmap[73] - The Group's strategic direction is "Customers First," focusing on customer needs during the pandemic to strengthen relationships[118] Corporate Governance - The Company has complied with all provisions of the Corporate Governance Code, except for specific deviations regarding director rotation[140] - The Company recognizes the importance of good corporate governance practices in safeguarding shareholder interests and enhancing performance[140] - The Company is committed to maintaining high standards of corporate governance practices[140] - The roles of Chairman and Chief Executive Officer are held by the same individual, which is considered appropriate for the Group[140] - The Company has a diverse board with members having international experience across various sectors[143] - The Company has established a formal and transparent arrangement for considering matters related to financial reporting and overseeing the relationship with external auditors[192] Employee Management - The Group had approximately 2,200 full-time employees as of March 31, 2020, down from 2,300 in 2019[113] - The Group's employee remuneration and welfare packages are competitive, with performance-based rewards[115] - The Group conducted regular training programs to enhance staff quality and teamwork[116] Financial Management - The Group maintained a prudent financial management strategy, ensuring sufficient liquidity to meet funding requirements for investments and operations[85] - Cash and bank balances increased to HK$1,018 million from HK$688 million, an increase of HK$330 million year-over-year[82] - The Group recorded a net cash position of HK$919 million, up from HK$614 million, reflecting an increase of HK$305 million[82] - Bank borrowings rose to HK$99 million from HK$74 million, an increase of HK$25 million, utilized for general working capital[82] Risk Management - The board is responsible for risk assessment and management in pursuit of strategic objectives[154] - The Group's annual plan on risk management control was reviewed[197] - The internal audit findings and management responses were evaluated[197]

Financial Performance - The company's revenue for the six months ended September 30, 2019, was HKD 781,360,000, a decrease of 12% compared to HKD 888,280,000 in the same period last year[4]. - The profit attributable to equity holders for the same period was HKD 34,101,000, representing a 70% increase from HKD 20,051,000 year-on-year[20]. - Basic earnings per share increased by 74% to HKD 5.4 compared to HKD 3.1 in the previous year[3]. - The average return on equity rose to 1.3%, an 86% increase from 0.7% in the previous year[3]. - The gross profit margin for the period was approximately 23.3%, down from 22.8% in the previous year[21]. - The company reported a pre-tax profit of HKD 50,158,000, an increase of 58% from HKD 31,785,000 in the previous year[21]. - The company’s total comprehensive income for the period was HKD 20,051,000, reflecting a significant change from the previous year[41]. - Profit attributable to equity holders increased by 70% to HKD 341 million, up from HKD 201 million in the previous year, primarily due to reduced foreign exchange losses and improved overall gross margin[114]. Assets and Liabilities - The total assets as of September 30, 2019, were HKD 3,414,096,000, a slight increase of 2% from HKD 3,331,706,000[4]. - The net cash position increased to HKD 1,585,330,000, reflecting a 2% growth from HKD 1,560,535,000[4]. - Total liabilities increased to HKD 678,992,000, representing an increase of 11.2% from HKD 610,515,000[24]. - The total equity attributable to equity holders of the company was HKD 2,660,984,000, a decrease of 3.8% from HKD 2,766,076,000[26]. - The net asset value decreased to HKD 1,585,330,000, down 1.7% from HKD 1,612,556,000[24]. - The company reported a decrease in trade receivables to HKD 24,673,000, down 19.9% from HKD 30,779,000[24]. - The company has a total of HKD 518,431,000 in inventory, down 6.2% from HKD 552,996,000[24]. - The total trade and bills receivables stood at HKD 910,737,000 as of September 30, 2019, compared to HKD 915,098,000 on March 31, 2019, a slight decrease of 0.5%[89]. Cash Flow and Dividends - The net cash inflow from operating activities for the six months ended September 30, 2019, was HKD 139,318,000, compared to a net outflow of HKD 77,132,000 in the same period of 2018[45]. - The company paid dividends of HKD 25,221,000 during the period, compared to HKD 31,527,000 in the previous year[45]. - The company declared a cash dividend of HKD 3.5 per share, up 17% from HKD 3.0 per share in the previous year[3]. - The interim dividend declared for the six months ended September 30, 2019, is HKD 0.035 per share, up from HKD 0.03 per share in 2018, totaling HKD 22,069,000 compared to HKD 18,916,000 in the previous year, representing a 16.0% increase[83]. Market Conditions and Business Strategy - The group experienced a slowdown in business performance due to global trade weakness, tensions in US-China relations, and a weakening domestic economy in China[114]. - The group noted that China's industrial output growth rate fell to below 5% year-on-year in July 2019, marking the slowest growth in many years[114]. - The GDP growth rate in China for Q3 2019 fell to 6%, below market expectations, prompting the central government to implement tax cuts to stimulate the economy[116]. - The company is focusing on expanding its market presence and developing new technologies to enhance its competitive edge[27]. - The company plans to enhance market share with the new MK6e "evolution" model and improve overall performance in the second half of the year[135]. Accounting and Compliance - The adoption of HKFRS 16 resulted in an increase in lease liabilities by HKD 2,210,000[55]. - The right-of-use assets increased by HKD 37,823,000, while prepaid land lease payments decreased by HKD 34,206,000[55]. - The company confirmed compliance with the corporate governance code during the six months ended September 30, 2019, with some deviations noted[157]. - The audit committee reviewed the unaudited interim results for the six months ended September 30, 2019[163]. Employment and Shareholder Information - The total number of full-time employees was approximately 2,200 as of September 30, 2019, a decrease from 2,300 in 2018[134]. - Major shareholder Chen Hsong Investment holds 399,641,620 shares, representing 63.38% of the issued ordinary shares[152]. - The company did not grant or exercise any share options during the six months ended September 30, 2019[149].

Financial Performance - Revenue for the year ended March 31, 2019, was HK$1,635,938, a decrease of 2% from HK$1,667,879 in 2018[3] - Profit attributable to equity holders of the Company was HK$90,279, down 11% from HK$101,877 in 2018[3] - Total assets decreased by 7% to HK$3,451,745 from HK$3,695,700 in 2018[3] - Basic earnings per share decreased by 12% to HK$14.3 cents from HK$16.2 cents in 2018[4] - Cash dividends per share were HK$7.0 cents, a decrease of 13% from HK$8.0 cents in 2018[4] - Return on average shareholders' funds was 3.2%, down from 3.7% in 2018, representing a 14% decline[5] - Return on average total assets was 2.5%, a decrease of 14% from 2.9% in 2018[5] - Net current assets decreased by 4% to HK$1,612,556 from HK$1,675,542 in 2018[3] - For the financial year ended 31 March 2019, the Group registered a slight turnover decline of 2% to HK$1,636 million compared to HK$1,668 million in 2018[21] - Profit attributable to equity holders declined by 11% to HK$90 million from HK$102 million in the previous year[21] Market Conditions - The company faced significant challenges due to the escalating trade tensions between the US and China, impacting global economic conditions[19] - The global economic outlook remains uncertain, heavily influenced by the Sino-American trade war and rising protectionist sentiments in the USA[29] - The overall economic environment saw a significant decline in global PMI, indicating acute contraction in the manufacturing sector, particularly affecting the Group's performance[44] - The Sino-American trade war initiated in July led to a rapid decline in China's PMI, which fell below the 50 mark, impacting the Group's turnover negatively[46] - Rising raw material prices, especially for iron and steel, exerted heavy pressure on the Group's profit margins during the financial year[46] - The Group anticipates a lackluster market in China due to uncertainties surrounding the Sino-American trade war, impacting growth prospects[110] Strategic Initiatives - The company plans to adapt its strategies in response to the changing macroeconomic environment and trade policies[19] - The Group plans to continue investing in quality improvement, new technology development, and expanding into overseas high-end markets to maintain competitiveness[30] - The launch of the all-new SPARK series of all-electric injection moulding machines is expected to fill the market gap between low-end China-made machines and high-end imports[26] - The Group aims to launch new products and expand into different application industries to maximize market share amid challenging conditions[111] Product Performance - The Group's turnover in China for the financial year was HK$1,062 million, a slight decline of 5% from HK$1,121 million in the previous year[58] - Internationally, the Group's turnover grew by 7% to HK$449 million, up from HK$421 million in the previous year[60] - The Group's sales of the new MK6 series high-performance machines contributed to maintaining turnover decline within 5% in China despite challenging market conditions[58] - The Group launched four new product lines during the "Chen Hsong Super New Products Carnival," including the high-performance all-electric injection moulding machines "SPARK" series[65] - The "SPARK" series aims to break the performance barriers between traditional China-made and high-end Japanese all-electric machines, with strong confidence in its market acceptance in China[68] - The MK6e "evolution" series is designed to serve specific market segments with high flexibility, allowing the higher-performing MK6 series to focus on high-end applications[70] Financial Position - As of March 31, 2019, the Group had net current assets of HK$1,613 million, a 4% decrease from HK$1,676 million in 2018[80] - Cash and bank balances increased to HK$688 million from HK$659 million in 2018, representing an increase of HK$29 million[80] - Bank borrowings rose to HK$74 million from HK$25 million in 2018, indicating a short-term loan increase of HK$49 million for working capital[80] - The Group maintained a net cash position of HK$614 million, down from HK$634 million in 2018, reflecting a decrease of HK$20 million[80] - The Group's capital commitments for industrial buildings and production equipment in Mainland China amounted to HK$7 million as of March 31, 2019[85] Corporate Governance - The Company has complied with all code provisions of the Corporate Governance Code, except for certain deviations regarding director retirement and separation of roles[134] - The Board consists of three executive directors and four independent non-executive directors, ensuring a diverse range of experience and expertise[145] - The Company is committed to maintaining high standards of corporate governance practices to safeguard shareholder interests[134] - The Company has a structured approach to risk assessment and management to achieve its strategic objectives[146] - The Company has established a formal and transparent arrangement for considering matters related to financial reporting, risk management, and internal control[182] Leadership and Management - Ms. Lai Yuen Chiang has been with the Group since 1988 and was appointed as Chairman on April 23, 2018, overseeing management and business development[114] - Mr. Chi Kin Chiang joined the Group in 1998 and became Deputy Chairman on April 23, 2018, responsible for manufacturing operations[118] - Mr. Stephen Chung has been with the Group since 2001 and serves as Group Chief Officer for Strategy, Sales, and Marketing, bringing over 14 years of experience in various fields[119] - The Group's leadership team includes members with advanced degrees from prestigious institutions, such as Columbia University and the University of California, Berkeley[119][124] - The Company has a strong focus on production management, sales, and marketing, leveraging the extensive experience of its executive team[114][119] Employee and Community Engagement - The total number of full-time employees as of March 31, 2019, was approximately 2,300, down from 2,500 in 2018[108] - The Company has been actively involved in various community and cultural initiatives through its directors' roles in different organizations[128] Risk Management - The Company has a structured approach to risk assessment and management to achieve its strategic objectives[146] - The Company reviewed the adequacy of resources and staff qualifications in its accounting and financial reporting functions[1] - The Group's compliance with regulatory and statutory requirements was reviewed as part of the corporate governance practices[1]